HomeBusinessComcast hooks you with internet and cable TV. Video games could be next

Comcast hooks you with internet and cable TV. Video games could be next

March 15, 2019

Comcast hooks you with internet and cable TV. Video games could be next

Not too long from now, when you’re ready to play your next big game, it may be on something other than Microsoft’s Xbox, Sony’s PlayStation or Nintendo’s Switch.

You might play it by connecting to a device or service coming from Apple, Google, Amazon or even Comcast.

That’s right, Comcast.

The cable and internet giant reportedly has bid or has considered bidding for Korean gaming company Nexon, which makes the popular online role-playing game MapleStory, according to a Korean business newspaper. Comcast is up against Amazon and Apex Legends maker Electronic Arts, which are also said to be in the mix.

Representatives from Comcast, EA, Amazon and Nexon either declined to comment or didn’t respond to requests for comment.

The news of Nexon’s potential sale serves as a reminder that the entertainment landscape is rapidly changing. As companies look for the next big thing beyond music subscriptions, internet connections and selling you the next iPhone, video games may hold a key.

The already huge $138 billion video game industry has produced cultural phenomena like the battle royale games Fortnite and Apex Legends and competitive sports franchises like Riot’s League of Legends. Each of those games is free to download, but they charge extra for flair like a dance move or a different look for your character. And people are buying. Epic’s Fortnite alone is estimated to have rung up $2.4 billion in revenue last year.

Analysts say that’s drawn the attention of media conglomerates and tech giants flush with cash and looking for a new way to grow. At the same time the devices you play games on now, such as the Xbox, PlayStation and Switch, are primed to disappear in the next decade, replaced by a superfast connection that allows you to play games over the internet the same way you watch Netflix today.

The technology, called game streaming, could lead to a shakeup among game makers like Activision Blizzard, Ubisoft and Bethesda Softworks, and is expected to be a major topic at next week’s Game Developers Conference in San Francisco.

Google is expected to use its upcoming presentation at GDC to unveil a gaming service built off its Project Stream technology, first shown last year. Xbox and EA say they want to offer game streaming too. And as larger companies like Comcast and its competitors look to jump into the game world, they may use their substantial bank accounts to buy game makers like Nexon for their expertise.

“Gaming is very international these days,” said Mike Vorhaus, a media analyst and CEO of Vorhaus Advisors. He added that any company hoping to join the fray needs to learn not just how to make a good title, but also stuff like how to give away free games like Fortnite and then make money after. And it’s a plus if the games resonate outside the US and Europe too. “With Nexon, you get a company and a brand that’s done very well in Asia and understands free-to-play games.”

Surprising fit

Nexon was founded in Korea 25 years ago and has specialized in online games for PCs and mobile devices. Its CEO is Owen Mahoney, a veteran of EA. And it’s best known for MapleStory, a free game in which players travel a fantasy world defeating monsters, exploring dungeons and creating unique characters. The game, which you can play with friends, boasts “hundreds of hours of adventure.”

The company also makes Dungeon Fighter Online, a game in which you fight your way through dark worlds and dungeons. It was particularly popular in China and eventually drew more than 600 million players worldwide.

That kind of success would be catnip to a company like Comcast, analysts say, bringing expertise in large online games while also expanding its business outside the US.

Comcast has shown interest in video games before. The cable and internet giant, which also owns NBC Universal, teamed up with EA to bring game streaming to TVs in 2015. The experiment, called Xfinity Games, offered people a chance to stream games like the tongue-in-cheek strategy game Plants vs. Zombies.

The project fizzled out, but it explains why Comcast might have considered a more serious move into gaming. “Comcast would get a front-row seat, ostensibly, and build its ‘gamer-grade Internet’ under the Xfinity brand,” said Joost van Dreunen, head of Nielsen’s SuperData Research…….Read more>>